Overall, outward remittances under LRS stood at $7.2 billion in April-June 2026 compared to $6.9 billion in April-June 2025.
| Photo Credit:
Indians’ overseas investment appetite surged in June, with remittances into foreign equity and debt more than doubling year-on-year to hit a record high $0.46 billion. Travel remained the dominant reason for sending money abroad and grew 11 per cent YoY.As per the RBI bulletin released on Tuesday, the total outward remittances under Liberalised Remittance Scheme (LRS) rose by about 20 per cent year-on-year (y-o-y) to $2.5 billion in June. This was up 6 per cent month-on-month from May.The overall growth was driven by sharp increases in remittances towards ‘deposits’ and towards ‘investment in equity and debt,’ which grew at 75 per cent and 119 per cent YoY in June, respectively.Investments in equity/debt hit all-time high of $0.46 billion. Deposits for June came in at $0.07 billion, but saw a sharp sequential correction, falling around 40 per cent MoM.Overall, outward remittances under LRS stood at $7.2 billion in April-June 2026 compared to $6.9 billion in April-June 2025.Experts note that a relatively subdued return profile of Indian equities after a prolonged rally is also likely to have prompted high-net-worth individuals and family offices to diversify globally. In contrast, many other markets, particularly the US, have offered stronger returns and exposure to sectors such as AI that are underrepresented in India. Interestingly, Elon Musk-led SpaceX’s $1.75 trillion IPO was also in June and contributed partially to a spike in investment activity.Sitashwa Srivastava, Founder and CEO of cross-border investing platform Borderless, said that beyond foreign equity markets, there has also been an increased appetite for dollar-linked fixed income investments given the depreciation of the rupee. Investors are looking to build their portfolios around dollar-denominated debt rather than rupee debt amid the latter’s weakness, he added.“Within Borderless, since the February-March period, when the dollar started getting stronger and touching 95-97 range, we have been seeing a considerable interest in keeping dollar deposits and dollar fixed income,” he added.Top contributorTravel remains the biggest component of outward remittance, accounting for about 54 per cent of total remittances at $1.37 billion in June. This also rose 10 per cent YoY and 6 per cent MoM, likely due to the weakening of the rupee.Within travel, education-related remittances rose 15 per cent MoM to $0.49 billion, in line with the beginning of the overseas education season. Business travel was flat and other travel (holidays and other spends) grew only 3 MoM at $0.85 billion.(With inputs from Rohan Das)Published on August 25, 2026
